Singtel and PT Telekomunikasi Indonesia International (Telin) have signed a memorandum of understanding (MoU) to establish a new submarine cable system linking Singapore and Batam. The newly formed Indonesia Singapore Cable System (INSICA) Consortium will undertake this project. The 100-km INSICA cable system is expected to become operational in the fourth quarter of 2026, enhancing data center telecommunications traffic between Singapore and Batam.
The INSICA project will include a 24-fibre pair subsea cable and two distinct terrestrial cable routes, offering a maximum capacity of up to 20 terabits per second per fibre pair. This new cable system will enhance network protection and reliability, ensuring continuous 24/7 operations for data centres.
“Batam is emerging as a prime location for data centres due to its close proximity to Singapore. With this cable system, we’ll be able to enhance the connectivity between the countries to support the intensive, higher power density AI workloads of enterprises and cloud companies”, Singtel digital infrastructure and services vice president Seng Keat Ooi said.
“The development of the INSICA cable system is yet another step that we’re taking in architecting a hyper-connected, digital ecosystem to serve the long-term demands of the region’s digital future and boost the regional economy”, Ooi added. The direct connectivity between data centres will also facilitate the deployment of emerging technologies, including the Internet of Things (IoT), robotics, AI, and data analytics. These technologies require high bandwidth and low latency to support commercial-scale and real-time applications.
“The global submarine cable market is poised for unprecedented growth over the next decade, positioning Batam and Singapore as prime locations for data centre investments”, Telin CEO Budi Satria Dharman Purba said. Southeast Asia’s data centre sector is rapidly growing, fueled by advancements in AI, cloud computing, e-commerce, IoT, edge computing, and 5G. This growth is attracting investments from both established players and new entrants.